NFT Projects Will Take Web3 by Storm in 2023: Indian Industry Experts

The market for non-fungible tokens (NFTs), which went through a rocky momentum this year, is projected to explode in popularity in the upcoming year. More brands across industries will adopt NFTs as a way to entice, reward, and retain next-gen buyers to give them immersive experiences enveloped in metaverse experiences. Meta and Reddit are projected to drive the global products and discussions about the NFT and metaverse sectors — both of which witnessed downfalls this year.

A new form of virtual interaction technology based on Web3 is being foresighted to emerge in 2023 that will intensify industrial rivalries and promotional activities around the world, said Rajagopal Menon, Vice President at WazirX crypto exchange.

“Brands will try to outshine each other for visibility among the crypto native audience. Retail adoption of crypto, largely driven by their indirect exposure to virtual digital assets through brands they tend to engage with will also see a rise,” Menon added.

In a report last week, Bloomberg said the sales of NFTs recorded a 16-month low following the downfall of the FTX crypto exchange, citing DappRadar.

The NFT trading volumes have reportedly slid by 97 percent since January.

Next year, however, the digital collectibles sector is projected to make a strong comeback.

The main reason would be more nations having framed their respective laws — which would being a layer of safety for investors.

Hardware makers like smartphone companies are also expected to tweak their products to make them more ‘Web3-friendly' starting next year.

The shift in this technological trend will be sustained and profited by the global artist community.

“By issuing tokens, digital artists can sell one or more limited edition NFT offerings. They will be able to raise sales as a result, which will fuel the market's expansion throughout the course of the forecast year. The market is expanding as a result of the rising demand for digital art. NFT has become more popular in applications for digital art. These factors will propel the worldwide NFT market's expansion,” Abhay Aggarwal, CEO and Founder of Colexion NFT marketplace, told Gadgets 360.

The size of the global NFT market is anticipated to increase by $113,933 million (roughly Rs. 940 crore) between 2022 and 2027, according to market research firm Technavio.

In the next four years, the NFT market is expected to swell at a CAGR of 35.02 percent.

The report also said that during the projection period, 39 percent of the growth of the global market would be attributable to Asia-Pacific Countries (APAC).

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.